It is often very important for consumers to determine, as far in advance as possible, what bills they are likely to be responsible for, and any fluctuations that may occur in their finances. This is obviously true for budgeting purposes, but it is also true when contemplating life and/or purchase events, such as a change in marital status, having a child, change of residence, or when considering whether a given product and/or service should be purchased and/or what features of a given product and/or service are most important.
A consumer whose personal and financial situation has been relatively static generally knows what bills to expect, and what fluctuations are likely to occur in their finances, if any. Consequently, these static consumers are less likely to be caught off guard by hidden costs and/or changes in their finances. However, the reality for many consumers is that they will experience numerous life and/or financial events, some of which are beyond the control of the consumer. Consequently, for many consumers, when they do experience, expect, and/or contemplate, personal and/or financial events, determining what bills/costs are likely to be associated with the event, and/or what the financial impact of the event is likely to be, is an important, if not central, concern. However, making such a determination can be a relatively difficult task, and may not be recognized as an issue until the event takes place, despite the fact that, in most cases, it is better to prepare for the financial consequences of an event as far ahead of the event as possible.
For instance, a given consumer may have recently been informed that they will be having a baby. In this case, particularly if the baby is a first child, the consumer may be very interested in determining the expected costs and/or other financial impact of parenthood. The consumer can probably relatively accurately determine some of the costs associated with the baby, such as, for instance, the hospital costs under the consumer's healthcare plan and perhaps the financial impact of maternity leave. The consumer can probably also fairly accurately determine the cost of food and perhaps clothing for the baby. However, in many cases, there are hidden costs/bills and/or other financial changes associated with a life event like having a child that the consumer may not be able to identify so readily, such as, but not limited to: tax consequences of parenthood; costs of local preschools; cost of life insurance for the parents; daycare costs; diaper costs; expenses associated with keeping a residence warmer for the baby; various protective devices and household upgrades associated with a baby; baby related accessory costs, such as car seats, toys, cribs, play pens, etc. As noted, often these costs are overlooked by parents-to-be, especially first-time parents. Some of the costs/changes in financial situation associated with having a baby may be general in nature while others are area and/or demographically variable.
As another example, a consumer buying, or contemplating buying, a house for the first time may be unaware of numerous bills/costs associated with home ownership either in general, or associated with a given area such as, but not limited to: trash service; property taxes; sewer service; gardener service; and various utilities and maintenance costs and/or how these cost fluctuate according to season and/or from month-to-month.
As another example, a consumer buying, or contemplating buying, a new car may be unaware of numerous bills/costs associated with ownership of the new car, such as: differences in gasoline consumption/cost between the new car and any existing vehicle; differences in maintenance costs between the new car and an existing vehicle; differences in insurance costs between the new car and an existing vehicle; etc. Some of the costs/changes in financial situation associated with buying a new car may also be general in nature while others are area and/or demographically variable.
As a result of the situation described above, currently it can be quite difficult for many consumers to determine the actual total costs and/or financial impact associated with a given life and/or financial event, both in terms of identifying all likely bills, and in terms of anticipating fluctuations in recurring/anticipated bills. Consequently, many consumers are faced with unexpected costs/bills, and many carefully prepared budgets are negated by these unexpected costs/bills. This can cause significant consumer stress and have a direct effect on the consumer's ability to deal with the event, both financially and emotionally.